Layoffs in Canada

Vendasta, a Saskatoon-based technology company, laid off an unspecified number of employees in August 2022, shortly after receiving a "Best Workplace" recognition. The layoffs were attributed to strategic restructuring and economic pressures, reflecting a challenging period for the tech industry. The company, which provides a platform for selling digital solutions to local businesses, did not disclose the exact percentage of its workforce affected. This move highlights the volatile nature of the tech sector, where even celebrated workplaces can face difficult adjustments in response to market conditions.

AlayaCare, a Montréal-based healthtech startup, has laid off 80 employees, representing nearly 14% of its workforce. The cuts were announced by CEO Adrian Schauer in an email to staff, citing the need to become cash-flow breakeven by the end of 2023 amid challenging macroeconomic conditions. The company has faced slower sales cycles and lower-than-expected revenue growth, prompting a shift from its previous aggressive investment and acquisition strategy. As part of broader cost-cutting measures, AlayaCare has also scaled back merger and acquisition plans and let go of office leases in Victoria and Queens. The layoffs, described as a difficult decision, impact teams across geographies, particularly on the acquired products side. Founded in 2014, AlayaCare provides an AI-powered platform for home healthcare providers and recently raised $225 million CAD in Series D funding last year.

Hootsuite, the Vancouver-based social media management company, is laying off approximately 400 employees, representing 30% of its global workforce. This reduction, announced to employees on Tuesday, will leave the company with just over 1,000 staff. CEO Tom Keiser cited the need to refocus on efficiency, growth, and financial sustainability as the reason for this difficult restructuring. The move reflects broader economic pressures affecting the tech industry and follows a period of rapid hiring and expansion for Hootsuite, which had grown to over 1,400 employees earlier in the year. The company has also faced challenges, including a postponed IPO and strategic shifts under Keiser's leadership toward e-commerce and customer service software.

Dooly, a SaaS company in the sales enablement industry, laid off 12 employees. The CEO expressed deep regret, attributing the layoffs to economic turbulence and taking personal responsibility for not shielding the team. He emphasized that the decision was not performance-related and actively sought to help the affected individuals find new roles in go-to-market teams. The layoffs occurred on the day of the post, reflecting the challenging climate for tech companies.

Uberflip, a Toronto-based B2B content marketing platform startup, has laid off 31 employees, representing approximately 17-20% of its workforce, which was around 182 people. CEO Yoav Schwartz announced the cuts on Thursday, citing the current unsteady macroeconomic environment as the primary reason, noting it has made the short-term future less predictable. The layoffs follow significant team scaling in recent years to prepare for anticipated growth. Founded in 2012 and having raised over $50 million, Uberflip is part of a broader trend of tech companies reducing staff after rapid expansion during favorable economic conditions. The company is assisting affected employees in finding new roles.

In response to a challenging economic climate marked by reduced consumer spending and high inflation, the direct-to-consumer fine jewelry brand Mejuri has laid off 50 employees, representing 10 percent of its workforce. The cuts, part of a broader trend affecting retail startups, were attributed to macroeconomic pressures including supply chain disruptions and shifting post-pandemic shopping habits. While the exact date of the layoffs was not specified, the announcement was made public this week, highlighting the difficulties faced by e-commerce companies as they adjust to a return to pre-Covid demand levels.

Montréal-based building materials delivery startup RenoRun has laid off approximately 70 employees, representing about 12% of its 600-person workforce. The company, which operates in the construction tech and logistics industry, made these cuts in response to a challenging economic environment characterized by market downturns, a difficult fundraising climate, and concerns over inflation and potential recession. CEO Eamonn O'Rourke described the situation as a "perfect storm," leading the startup to prioritize financial longevity. Consequently, RenoRun has also paused its planned expansion into new U.S. cities for the foreseeable future, focusing instead on its existing six markets.

Vancouver-based online furniture retailer Article has laid off 216 employees, representing 17% of its workforce, marking the first such cuts in the company's 11-year history. CEO Aamir Baig took personal responsibility, explaining that the decision stemmed from a post-pandemic correction. While the company experienced a surge in e-commerce demand during COVID-19, the anticipated sustained shift to online shopping did not materialize, leading to a return to pre-pandemic trends. Baig stated the company had been "living beyond our means" and needed to resize to restore financial strength. The layoffs, announced in a statement from Baig, affect employees across North America. Departing staff, referred to internally as "Particles," will receive severance, extended benefits, and can keep their company equipment.

Unbounce, a Vancouver-based landing page builder serving over 100,000 customers globally, has laid off 47 employees, representing 20% of its workforce of 234. The cuts, announced by CEO Felicia Bochicchio in late 2022, are part of a larger restructuring to navigate turbulent market conditions and invest with greater discipline. Affected teams include marketing, customer support, product development, and revenue operations, with the layoffs also impacting staff from recently acquired LeadsRX. The company cited the need to support its long-term purpose and strategy amid economic downturn pressures, offering severance and extended benefits to departing employees.

Sherpa, a company specializing in AI-powered visa and border crossing services, has laid off 22 employees. This reduction comes as the company aims to become less dependent on external venture capital funding, responding to a significant market shift where revenue-to-valuation multiples have sharply declined. The layoffs, described by leadership as an extremely difficult decision, are intended to ensure the company can continue fulfilling commitments to partners and customers. While the exact total workforce and percentage affected aren't specified, the move reflects broader challenges in the tech and venture capital landscape.

Clearco, a Canadian FinTech company, has laid off 125 employees, representing about 25% of its global workforce, which it previously stated was around 500 people. The co-founders announced the cuts via email, citing the challenging macroeconomic environment as the primary reason. They described the move as necessary to ensure long-term sustainability and profitability, allowing Clearco to continue supporting founders. This follows a period of quiet downsizing and operational adjustments, including earlier layoffs in Ireland and fee increases for its startup loans. The layoffs reflect broader pressures in the tech industry, as companies like Shopify also reduce staff amid economic uncertainty.

Coinsquare, a Toronto-based cryptocurrency exchange startup, has laid off approximately 30 employees, representing about 24 percent of its workforce, reducing headcount from 125 to around 95. The cuts, confirmed in mid-2022, stem from challenging market conditions, including decreased trading volumes amid the broader crypto downturn, as well as a strategic shift toward becoming a regulated crypto investment dealer in Canada. The company, which experienced rapid hiring during the previous year's market boom, also implemented executive pay cuts. This move aligns with a wider trend of layoffs across the crypto industry, as firms like Gemini and Coinbase also reduce staff. Coinsquare aims to refocus its team to meet regulatory requirements, following a 2020 settlement with the Ontario Securities Commission.

Shopify laid off 1,000 employees representing approximately 10% of its workforce on 2022-07-26.

Introhive laid off 57 employees representing approximately 16% of its workforce on 2022-07-20.

Shopify, the Ottawa-based e-commerce platform, laid off 50 employees in July 2022, representing less than 1% of its workforce of over 10,000. The layoffs were part of the company's response to a significant decline in its stock price, which had fallen more than 70% from its late 2021 peak, impacting employee compensation packages. This move coincided with Shopify delaying a planned compensation overhaul that aimed to give employees more flexibility in choosing between cash and stock-based pay. The tech industry was experiencing a broader sell-off at the time, prompting the company to adjust its strategies and salary frameworks, which also led to delays in job offers and new hires.

Online car retailer Clutch has laid off 76 employees, representing about 22% of its workforce, as part of a strategic move to slow growth and extend its financial runway amid challenging market conditions. The layoffs, which occurred on June 14, reduced the company's headcount from approximately 340 to between 260 and 270 people. CEO Dan Park cited the need to prepare for a prolonged period of economic uncertainty, influenced by broader tech industry trends and guidance from investors like Sequoia Capital. This Canadian tech startup, which secured a $100 million Series B in 2021, aims to ensure stability for the next 24 months by cutting costs and limiting hiring, despite remaining well-capitalized.

Ritual, a Canadian food delivery and restaurant technology company, laid off 23 employees. The layoffs were announced by CEO Ray Reddy in a LinkedIn post, who described it as a difficult day for the team. While the exact percentage of the workforce affected and the total employee count were not specified in the announcement, the move reflects the ongoing challenges within the tech industry. The company expressed gratitude for the contributions of the departing staff and actively encouraged other employers to reach out to connect with the affected talent.

Toronto-based startup Bonsai has conducted a second round of layoffs in less than two months, letting go of approximately 30 employees, which follows an earlier reduction of 29 staff in April. Combined, these cuts represent a 70 percent reduction in workforce since April, leaving the company with 25 full-time and contractor employees. CEO Saad Siddiqui cited increased volatility in public and private capital markets as the reason, stating the move aims to conserve cash, extend runway, and focus on profitability amid changing investment criteria. Despite raising $21 million CAD in Series A funding in March, the company, which provides embedded commerce tools for media publishers, is restructuring to navigate a tightening market, joining other Canadian tech firms in recent layoffs.

Wealthsimple laid off 159 employees representing approximately 13% of its workforce on 2022-06-15.

Swyft, a Shopify-backed ecommerce delivery startup based in Toronto, laid off 10 employees, representing roughly 30% of its 34-person workforce, in June 2022. The company, which provides same-day local delivery for brands like Knix and Lush, made the cuts to hyper-focus on its core business and preserve cash, aiming to extend its operational runway to two years. This move reflects a broader trend of belt-tightening among tech startups, as companies adjust to an uncertain economic and funding environment after a period of rapid growth fueled by venture capital.

Clearco, a Canadian fintech startup providing capital to e-commerce businesses, has laid off a portion of its staff in Dublin, Ireland. The cuts, reported to be around 10% of the local team, affect a hub that had 75 employees just months prior. This move comes only three months after the company entered the Irish market with a pledge to invest €100 million and hire 125 people there. Clearco attributed the layoffs to a shifting global economic landscape, citing macroeconomic headwinds like inflation, supply chain issues, and the war in Ukraine. The company confirmed these cuts are isolated to its Dublin operations and stated it still plans to hire more staff there later this year. This restructuring occurs alongside Clearco's recent expansion into Germany, where it has pledged a €500 million investment.

Canadian embedded commerce startup Bonsai laid off 29 employees, representing about 34% of its 84-person team, on April 21. This restructuring occurred less than a month after the company secured $21 million in Series A funding. CEO Saad Siddiqui stated the layoffs were a proactive shift in operating philosophy to reallocate capital toward customer acquisition and hyper-growth, moving away from a product-building focus. The cuts, which affected product, engineering, and other departments, were attributed to discontinuing certain internal features, not market conditions. Bonsai provides white-labeled commerce tools for media publishers like BuzzFeed and Vox Media.

Goodfood, a Montreal-based meal-kit and grocery-delivery company, laid off 70 employees this week, representing about 2.8% of its workforce, which now stands at 2,500. This is the third round of layoffs in six months, reducing total staff by nearly 25% since the end of its last fiscal year. The company is also closing its Ontario distribution center, consolidating operations into Quebec. Executives cited inflation, supply-chain disruptions, and labor shortages driven by the pandemic and geopolitical crises as reasons for the cuts, aiming to accelerate the path to profitability. The layoffs occurred in early April 2022, as the publicly traded company navigates challenges in the competitive food delivery industry.

Legible, a Vancouver-based ebook platform, has laid off 23 employees, representing over a third of its 60-person workforce, effective April 4. The publicly-traded company cited a need to streamline operations and reduce its annual burn rate by nearly $2 million. This move makes Legible the second publicly-listed Canadian tech firm to announce significant layoffs recently, following Thinkific. The decision comes amid a challenging capital-raising environment, marked by falling share prices and broader economic pressures like inflation and rising interest rates, which have particularly impacted unprofitable, high-growth tech companies.

Vancouver-based online course platform Thinkific is laying off 100 employees, representing one-fifth of its 499-person team. The cuts, announced after the company reported a $26.4 million USD net loss last year, are part of a restructuring to increase efficiency and reduce costs. Affected roles span general administration, customer support, management, and targeted reductions in research & development and sales & marketing. This move follows a period of rapid post-IPO growth, where headcount nearly doubled since early 2021, but was accompanied by mounting losses and a significant drop in share price. The company, which went public on the Toronto Stock Exchange in April 2021, provides cloud-based software for entrepreneurs to create and sell online courses.

Toronto-based retail software startup Hubba is shutting down operations after over a decade, resulting in layoffs for an unconfirmed number of its approximately 45 employees. The company, which had raised over $60 million from notable investors like Goldman Sachs, communicated the wind-down decision to investors on Monday. Hubba, once considered one of Toronto's hottest startups with ambitions to reach a $1 billion valuation and an IPO, had faced significant challenges since 2018, including multiple rounds of layoffs and a strategic pivot from enterprise clients to focusing solely on independent retailers. The shutdown marks the end of a venture that aimed to connect independent brands with buyers but ultimately could not sustain its operations.

In December 2020, Montreal-based flexible workspace startup Breather underwent a major restructuring, laying off 90 employees, which represented 75% of its then 120-person workforce. The company reduced its staff to just 30 people. This drastic downsizing was part of a strategic pivot away from being a physical workspace operator, as the COVID-19 pandemic severely impacted its business model. Breather abandoned hundreds of leases in the U.S. and U.K., filing for insolvency processes for those subsidiaries, and planned to exit its remaining 79 Canadian leases. CEO Bryan Murphy announced the company would shift to a pure technology play, aiming to become an online marketplace for third-party flexible office space, akin to Airbnb, rather than continuing as a capital-intensive operator like WeWork.

Toronto-based fintech startup Aya, which specializes in payments and administration for employee benefits packages, has secured $3.7 million CAD in seed funding. The round was led by MaRS Investment Accelerator Fund and Luge Capital, with participation from Anthemis Group, BDC Capital, StandUp Ventures, and angel investors. Founded in 2018, Aya operates at the intersection of fintech and healthtech, offering solutions like Health Spending Accounts (HSA) and Wellness Spending Accounts (WSA) through partnerships with brokers and insurance carriers. The new capital will fuel customer acquisition, product development, and expansion into the US market, building on earlier funding and existing partnerships with several brokerage firms.

Shopify, a Canadian e-commerce giant with over 5,000 employees globally, has laid off approximately 30 to 50 staff members, representing a small fraction of its workforce. The cuts, which occurred around late 2020, primarily affected internal operations roles focused on office management and technical maintenance, along with some marketing positions. This move is directly tied to Shopify's strategic shift to a permanent remote work model, dubbed "digital by default," a transition accelerated by the COVID-19 pandemic. As the company reduces its reliance on physical offices—evidenced by exiting some locations and reimagining others as "recruitment hubs"—roles dedicated to in-office support have become redundant. The layoffs, while minor in scale, underscore the operational realignments within the tech industry as companies adapt to long-term remote work.

Toronto-based corporate catering startup Thriver (formerly Platterz) laid off 75 employees, representing 50% of its 150-person workforce, in the second quarter of 2020. The drastic reduction was a response to a significant revenue dip caused by the COVID-19 pandemic, which devastated the corporate catering industry as offices closed and remote work became widespread. The layoffs primarily affected non-Canadian operations in Israel and the US as the company centralized its functions and shifted to remote customer service. Concurrently, Thriver secured a $43.8 million CAD Series B funding round to pivot beyond food into broader virtual employee engagement and workplace wellness verticals, focusing new hiring on research, development, and marketing.

Snaptravel on 2020-07-16.

Intersect, a Toronto-based custom software development firm and subsidiary of CoreLogic, laid off 19 employees, representing about 11% of its 160-person workforce. The layoffs were announced via LinkedIn by then-CEO Paul Crowe in late 2020, shortly before he stepped down from his role after nine years with the company. While the exact reason for the staff reduction was not officially confirmed, it occurred during the COVID-19 pandemic, a period of widespread economic uncertainty. The company, which serves clients like American Express and TD Bank, saw its leadership transition to internal executives following Crowe's departure.

Canadian EdTech company Top Hat has laid off 16 employees, representing 3% of its total workforce, as part of an internal restructuring to adapt to changes in the higher education sector accelerated by the COVID-19 pandemic. The layoffs, which occurred in the revenue team, follow a $72 million Series D funding round three months prior. CEO Mike Silagadze explained that the shift is not a cost-cutting measure but a strategic pivot, as the pandemic disrupted traditional sales outreach to university professors—their core customers. With professors harder to reach, Top Hat is reallocating resources toward digital content and enterprise institutional sales, moving 28 employees to these areas. The company emphasizes that this restructuring reflects an evolved go-to-market strategy to ensure long-term success in a transformed educational landscape.

League, a digital health platform company, has laid off an unspecified number of employees as part of organizational changes necessitated by the economic impact of the COVID-19 pandemic. The layoffs, announced by CEO Michael Serbinis in May 2020, were part of broader cost-saving measures that also included salary reductions and bonus deferrals. The company cited the need to ensure its mission continuity and position itself for acceleration during the economic recovery. While exact figures on the number laid off, total employees, and percentage were not disclosed, League emphasized its commitment to supporting affected colleagues by extending benefits, including mental health support for them and their families. The layoffs reflect the broader challenges faced by businesses in the health tech industry during the global crisis.

Element AI, a prominent Canadian artificial intelligence startup based in Montreal, laid off 15% of its workforce in April 2020 as part of a restructuring effort to reduce costs and meet investor expectations. The company, which had grown to 500 employees after raising significant funding, reduced its staff to 350. This downsizing followed challenges in commercializing its AI technologies and transitioning proofs-of-concept into broader sales, leading to lower-than-expected revenue. Concurrently, Element AI hired its first chief financial officer and chief revenue officer to strengthen its leadership team. The layoffs reflect the company's shift from rapid expansion to a more sustainable operational model amid scrutiny over its high spending and "burn rate."

Toronto-based B2B SaaS startup Loopio has laid off 11 employees, constituting 8% of its workforce, due to economic pressures from the COVID-19 pandemic. The cuts, announced in mid-2020, affected sales, marketing, software development, and people operations teams. CEO Zakir Hemraj cited a significant slowdown and increased scrutiny in software purchasing decisions across industries, leading to deferred deals and a strategic shift in the company's growth and hiring plans. Despite the layoffs, Hemraj noted strong customer retention and sustained interest in Loopio's enterprise proposal management platform, which serves over 800 companies. The firm, founded in 2014 and backed by $11 million in funding, is exploring government relief programs while navigating the temporary market downturn.

Ada Support, a Canadian AI chatbot platform for customer service, has laid off 36 full-time employees, representing 23% of its 156-person workforce, along with five co-op students whose contracts were canceled. The company-wide cuts, announced in April 2020, were driven by the economic uncertainty of the COVID-19 pandemic, which slowed new software purchases despite increased customer reliance on Ada's technology. This reduction came just over a month after the startup secured a $63.7 million CAD Series B funding round, aimed at scaling its platform. Ada, operating in the competitive tech and AI industry, cited the need to reevaluate operational expenses and noted it did not qualify for federal wage subsidies due to its continued growth.

Toronto-based cloud-accounting software company FreshBooks has laid off 38 employees, representing 9% of its workforce, as announced by CEO Mike McDerment in a LinkedIn post. The layoffs, attributed to the economic realities induced by the COVID-19 pandemic, were made across various departments to ensure long-term financial responsibility and control over the company's destiny. Despite the reduction, FreshBooks remains in a growth and expansion mode, with plans to continue hiring in key areas and expanding its European office in Amsterdam. The executive leadership team has also volunteered to reduce their compensation by about one-third during this period. The company, which recently secured significant investment, aims to position itself independently from capital markets while navigating the current challenges.

Tulip Retail, a company providing mobile-first enterprise software for retail associates, laid off 14 employees due to the severe impact of COVID-19 on the retail industry. The layoffs were a cost-cutting measure to ensure the company's long-term sustainability and mission, despite efforts to reduce expenses elsewhere. This difficult decision was announced by CEO Ali Asaria, who expressed gratitude for the contributions of the affected team members. The move reflects broader challenges in the retail sector during the pandemic, as companies adapted to shifting market conditions.

TouchBistro, a Toronto-based startup providing point-of-sale and restaurant management software, temporarily laid off 131 employees, representing 23% of its 560-person workforce, due to the devastating impact of COVID-19 on its core restaurant client base. The layoffs, announced in March 2020, primarily affected teams in Canada, the U.S., and the U.K., while employees in Mexico faced salary reductions and a shortened workweek. As restaurants globally were forced to close or pivot to takeout, TouchBistro shifted its focus to developing free or discounted tools to support customers' cash flow and delivery operations. CEO Alex Barrotti reduced his salary to zero, and the company maintained benefits and stock option vesting for laid-off staff, aiming to preserve the business for recovery once the pandemic subsided.

In April 2020, Clearbanc, a Toronto-based fintech company providing equity-free funding to startups, laid off 17 employees, representing about 8% of its staff. The layoffs, affecting roles from office managers to sales, were implemented to navigate the long-term economic uncertainties brought on by the COVID-19 pandemic. Despite the cuts, the company emphasized it would continue operations and support affected employees with extended benefits and job search assistance. Clearbanc, which had rapidly grown, hiring over 140 people the previous year and disbursing $1 billion to numerous startups, noted that while demand for its capital remained strong, it would adopt a more conservative investment approach due to market volatility. The layoffs were seen as a strategic adjustment to ensure sustainability amid the global crisis.

In response to the COVID-19 pandemic, the Canadian e-commerce fine jewelry startup Mejuri has laid off approximately 36 employees, representing 15 percent of its workforce of 244. The company, founded in Toronto in 2015, has closed all its retail stores in cities like Toronto, New York, and Los Angeles due to government-mandated closures of non-essential businesses. The layoffs, confirmed in late March 2020, included a mix of temporary and permanent reductions, primarily affecting retail staff, while the online store continues to operate. This move reflects broader challenges in the tech and startup industry, as many companies faced significant disruptions during the pandemic.

Canadian coding school Lighthouse Labs laid off 14 employees in April 2020, representing just over 26 percent of its then 53-person workforce. The layoffs were a direct result of operational changes necessitated by the COVID-19 pandemic, which forced the company to shift its in-person bootcamps online. This transition drastically altered 25 to 30 roles, particularly in marketing and physical operations. While 14 staff were let go, another 12 were initially moved to reduced hours through a government work-share program. However, following the approval of a federal wage subsidy, Lighthouse was able to bring all affected employees back to full-time work by mid-April. The company, which operates bootcamps across Canada, also launched a scholarship fund to support those unemployed due to the pandemic.

Connected, a Toronto-based software product development firm specializing in design, product, and engineering, laid off 17 employees last week, representing 10% of its workforce. This move is part of a broader trend of recent layoffs within the Toronto tech sector, affecting companies like Ritual and Ecobee as well. The layoffs highlight ongoing adjustments in the industry, with the company offering support by sharing an opt-in list of affected employees to connect them with hiring opportunities.

Toronto-based FinTech startup Borrowell has laid off 15 employees, representing 20 percent of its 75-person workforce, as a direct result of the COVID-19 pandemic's economic impact. CEO Andrew Graham cited that while consumer financial concerns have increased, many partner financial institutions have reduced new business, directly affecting Borrowell's referral-based model. The layoffs, deemed a difficult but necessary decision for long-term stability, occurred amidst broader industry challenges. Despite government wage subsidy programs, Graham and other tech leaders argue the current criteria exclude fast-growing startups like Borrowell, prompting calls for urgent policy changes to support the innovation sector during this crisis.

BusBud laid off 23 employees representing approximately 32% of its workforce on 2020-04-06.

Hopper on 2020-04-06.

In April 2020, blockchain and cryptocurrency mining company Bitfarms announced temporary layoffs as part of cost-cutting measures in response to the economic downturn caused by the coronavirus pandemic. The publicly traded firm, listed on Canada's TSX Venture Exchange, aimed to reduce its monthly operating expenses by 20-25% to maintain long-term viability. While the exact number of employees affected was not disclosed, the layoffs were implemented to help the company withstand short-term volatility, including challenges related to the upcoming Bitcoin halving event. Bitfarms, which operates five facilities in Quebec powered by hydroelectricity, cited its strong fundamentals and scale as factors enabling it to continue generating positive cash flow during the crisis. This move reflected broader pressures in the digital currency sector, where other firms like Galaxy Digital and Bitcoin.com were also reducing staff.

Opencare laid off 18 employees representing approximately 25% of its workforce on 2020-04-03.

Ritual laid off 196 employees representing approximately 54% of its workforce on 2020-04-02.